Documents filed to the US Bankruptcy Court for the Southern District of New York reveal that North American anime distributor 4Kids is planning to sell "substantially all of [their] Yu-Gi-Oh!-related assets" to KidsCo Media Ventures LLC, a company that was incorporated on April 4, 2012, for ten million dollars. While KidsCo was incorporated in Delaware, the address listed in the documents is identical to the address for the Saban Capital Group (whose subsidiaries own the Power Rangers franchise), and contact emails for the company are tied to the "saban.com" domain name. As part of the bankruptcy proceedings, an auction will be held for these assets if a qualified bidder appears, but KidsCo is considered a "stalking horse bidder."

The primary asset in the deal is referred to as the "Yu-Gi-Oh! Business," which is defined as "business relating to and commercial Use of Yu-Gi-Oh!, including the rights granted under the Yu-Gi-Oh! Grant Agreements, all other Purchased Assets relating to Yu-Gi-Oh!, The CW Block and [4Kids'] right to Use and profit from the foregoing and the Yu-Gi-Oh! Related Intellectual Property, the Yu-Gi-Oh! brand, and Yu-Gi-Oh! Productions."

The proposed sale also includes the sale of rights relating to the Dragon Ball Z series, including 52 episodes of the television show, as well as the company's rights relating to Dragon Ball Z Kai.

The closing date for the sale described in the agreement is June 30, 2012.

Anime News Network is reporting that 4Kids has sold the rights to its Yu-Gi-Oh!-related assets to KidsCo Media Ventures LLC. KidsCo is an affiliate of the Saban Capital Group, the investment firm whose subsidiaries own the Power Rangers franchise.

Anime News Network is now reporting that 4Kids has notified them that the proposed sale to KidsCo has not been finalized. The Bankruptcy Court can still authorize other companies to submit competing bids, and the court must approve any sale.

4Kids has announced that 4K Acquisition Corp., an indirect subsidiary of Japan's Konami Corporation, has made competing bids in the bankruptcy auction for "substansially all of [4Kids'] assets," including the assets for the Yu-Gi-Oh! franchise.

After several follow-up bids from both parties, the auction was adjourned so the two parties can consider an agreement that would split 4Kids' assets between them.

4Kids filed a notice in the company's bankruptcy case that explains who will take over the company's contracts and obligations. Under a proposed agreement, Kidsco Media Ventures LLC (an affiliate of Saban Capital) and 4K Acquisition Corp. (an indirect subsidiary of Japan's Konami Corporation) would divide the assets and obligations of 4Kids. However, this proposed agreement will not be finalized, because Judge Shelley C. Chapman has to approve the agreement after a hearing on June 20, 2012.

Anime News Network is reporting that the United States Bankruptcy Court in the Southern District of New York filed a document on June 26 after a 10:00 a.m. EDT hearing granting the sale of 4Kids' Yu-Gi-Oh! and CW network-related assets to a joint bid by Saban's Kidsco Media Ventures LLC and Konami's 4K Acquisition Corp.

Saban Brands announced at San Diego Comic-Con that it was rebranding the 4Kids' Toonzai block on the CW as Vortexx. The new block will be launching on August 25, 2012. As of this writing, the only anime that has been announced as being part of the block is Yu-Gi-Oh!

During an interview with ICv2, Konami Digital Entertainment Vice President Card Business Yumi Hoashi, it was revealed with Konami's role will be in regards to the Yu-Gi-Oh! franchise.

According to the interview, Konami is taking over 4Kids' New York office and creating a new company with some 4Kids employees. This new company will handle the Yu-Gi-Oh! anime's adaptation, distribution, and related merchandising licensing.

Konami is planning to continue broadcasting Yu-Gi-Oh! in North America while expanding distribution by finding a new television channel to rebroadcast the series in the United States. In the interview, it was confirmed that Yu-Gi-Oh! will still air on The CW's Saturday morning block that Saban's KidsCo acquired from 4Kids. Yu-Gi-Oh! Zexal airs from 9:00 a.m. to 10:00 a.m. EST, and the original Yu-Gi-Oh! series airs from 11:00 a.m. to 12:00 p.m.